- Debt to water and energy companies reached more than £7 billion, while customers are missing out on support to help them manage debt, such as repayment plans and social tariffs
- A third of customers did not find it easy to get in touch with their broadband providers when things go wrong
- The NAO says regulators Ofgem, Ofwat and Ofcom must strengthen support for consumers in vulnerable circumstances, increase awareness of support and tackle the drivers of rising debt.
Millions of people are missing out on support for essential bills, such as water, energy and broadband, as debt to water and energy companies climbs over £7 billion1 – this is according to a report by the National Audit Office (NAO) published today (10 June).
The report examined how Ofcom, Ofwat and Ofgem support consumers in vulnerable circumstances and whether people can access the help they need from providers of essential services.
The watchdog found there has been a marked increase in household energy debt, following Russia’s invasion of Ukraine, with energy debt more than double what it was in 2021, rising by 118%.2
Since the NAO’s last report on this topic in 2019, regulators have strengthened protections, introducing new rules on how companies treat customers and taking enforcement action – for example changing company licences to improve customer service and issuing multi-million-pound fines to providers where service and performance fall short of expectations. Now, NAO finds the regulators must now make changes to keep pace with consumer needs.
Consumers still struggle to contact their providers and are not always aware of support available to help manage their bills – such as social tariffs and repayment plans. The NAO found only a third of eligible broadband customers and 39% of water customers who are struggling to pay their bills are aware of social tariffs, meaning people on low incomes and in vulnerable circumstances could be missing out on support to help manage debt. Energy customers on repayment plans owe around £1,000 less than those without one in place.
Ofwat and Ofgem have overseen an uptake in registration for company priority services registers (PSR)3, although consumer awareness remains low. The PSR does not extend to the broadband sector, which has separate requirements. Ofcom does not routinely monitor take up or awareness of support.
The NAO found regulators are not aligning their performance measurements with actual consumer experiences and outcomes.
The NAO recommends regulators:
- Improve access to support – to make it easier for people to contact providers through a range of accessible channels that meet the diversity of consumer needs.
- Increase awareness of available help – such as social tariffs, repayment plans and other support schemes, so eligible consumers are clearly signposted and not missing out.
- Tackle industry drivers of rising debt – including addressing industry practices such as inaccurate billing, delays when people move home and barriers that prevent consumers from switching tariffs. The NAO found that industry practices account for an estimated 35% of customer energy debt.
- Strengthen support for consumers in vulnerable circumstances – promoting services that are designed around need, improving how consumers are identified and supported, and making better use of data and data-sharing across sectors
“Regulators have made progress to support consumers, but they’re not keeping up with the pressure now facing millions of households.
“With debt rising sharply, it's more important than ever to make regulation work so that people know what support is available and can contact essential providers when they need to.”
Gareth Davies, head of the NAO
Read the full report
Regulating water, energy and broadband to protect consumers in vulnerable circumstances
Notes for editors
- Figure from March 2025
- Figures from March 2025
- The Priority Services Register is UK-wide service that helps utility companies identify and support customers who have extra communication, access or safety needs.